Jun 21, 2001 : Exodus Cuts Sales, Earnings Outlook
📅 - Troubled Web hosting firm Exodus Communications dealt investors another blow last night when the company said it would miss estimates for the second quarter and the rest of 2001.
After the close Wednesday, the company said its second-quarter net loss would be $140 million, as compared to their first-quarter loss of $118.3 million. The company said the loss comes on revenue of $315 million, which was below the $355.3 million analysts were expecting.
Exodus also said revenue for the year would total approximately $1.35 million, which is below the $1.5 to $1.6 million analysts were expecting.
Investors have been slamming shares in the company all week, and today has been no different thus far. In morning trading, shares in Exodus are down to $1.50.
Shares in Exodus were worth $12 in April.
After the announcement, the company was swiftly downgraded by a number of brokerage houses, including Goldman Sachs and First Union Securities.
Despite the recent performance of the company's stock, CEO Ellen Hancock was still optimistic about the future of Exodus. "While market conditions are certainly more challenging than they were a few months ago, we remain optimistic about the overall market and Exodus' position," she said. "The fundamentals underlying managed hosting are solid. Enterprises continue to look at the web as a way to reduce costs, enhance communication with their customers, partners and employees and as a way to enhance productivity. We are the recognized market leader in managed hosting services."
Exodus also announced it had paid off a $150 million line of credit, securing the opportunity for future borrowing if necessary.
After the close Wednesday, the company said its second-quarter net loss would be $140 million, as compared to their first-quarter loss of $118.3 million. The company said the loss comes on revenue of $315 million, which was below the $355.3 million analysts were expecting.
Exodus also said revenue for the year would total approximately $1.35 million, which is below the $1.5 to $1.6 million analysts were expecting.
Investors have been slamming shares in the company all week, and today has been no different thus far. In morning trading, shares in Exodus are down to $1.50.
Shares in Exodus were worth $12 in April.
After the announcement, the company was swiftly downgraded by a number of brokerage houses, including Goldman Sachs and First Union Securities.
Despite the recent performance of the company's stock, CEO Ellen Hancock was still optimistic about the future of Exodus. "While market conditions are certainly more challenging than they were a few months ago, we remain optimistic about the overall market and Exodus' position," she said. "The fundamentals underlying managed hosting are solid. Enterprises continue to look at the web as a way to reduce costs, enhance communication with their customers, partners and employees and as a way to enhance productivity. We are the recognized market leader in managed hosting services."
Exodus also announced it had paid off a $150 million line of credit, securing the opportunity for future borrowing if necessary.
Reads: 1865 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/exodus621.cfm
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